Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-28672'>Powerlong Commercial Management Holdings</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Powerlong Commercial Management Holdings

Morning Views Asia: Powerlong Commercial Management Holdings

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-2036'>Central China Securities</a></li><li><a href='#lucror-entity-18387'>CIFI Holdings</a></li><li><a href='#lucror-entity-227'>Guangzhou R&F Properties</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li><li><a href='#lucror-entity-29231'>KWG Living Group</a></li><li><a href='#lucror-entity-21047'>Ronshine China Holdings</a></li><li><a href='#lucror-entity-3474'>Yuzhou Group</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Central China SecuritiesCIFI HoldingsGuangzhou R&F PropertiesJingrui HoldingsKWG Living GroupRonshine China HoldingsYuzhou Group

Morning Views Asia: Central China Securities, CIFI Holdings, Guangzhou R&F Properties

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Variable Interest Entities - Lucror Analytics

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Logan Group’s H1/21 results were in line with our expectations. The growth in contracted sales and revenue was robust, reflecting good sales execution and a satisfactory pace of property delivery. Margins contracted, but remained strong compared to peers. Profitability will likely be sustained as Logan gradually converts its urban redevelopment projects into saleable resources. Although Logan's expansion continued at an aggressive pace, land spending did not exceed the limit (40% of contracted sales) set by the regulator. However, the group may spend the entire 40% of its contracted sales for the full year. Positively, Logan's debt level remained stable in H1/21. Credit metrics broadly improved, except for weaker Debt/EBITDA, as the margin contraction led to lower earnings.

  Logan Group’s H1/21 results were in line with our expectations. The growth in contracted sales and revenue was robust, reflecting good sales execution and a satisfactory pace of property delivery. Margins contracted, but remained strong compared to peers. Profitability will likely be sustained as Logan gradually converts its urban redevelopment projects into saleable resources.   Although Logan's expansion continued at an aggressive pace, land spending did not exceed the limit (40% of contracted sales) set by the regulator. However, the group may spend the entire 40% of its contracted sales for the full year. Positively, Logan's debt level remained stable in H1/21. Credit metrics broadly improved, except for weaker Debt/EBITDA, as the margin contraction led to lower earnings. 

Logan Group - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Jingrui's H1/21 results were in line with our expectations, despite the weak profitability and higher debt. The increases in contracted sales and revenue were promising. The credit profile remained weak, with slight improvements thanks to strong top-line growth. Positively, liquidity is adequate. The company's maturity profile has been extended. Jingrui maintained decent access to capital, and slowed its pace of expansion in H1/21. However, the company is now in breach of two of the Three Red Lines thresholds, and will need to reduce debt in H2 to meet regulatory requirements. Notably, Jingrui has increased its use of JVs, possibly to scale up. This is indicated by the company's decreasing consolidation ratio. While Jingrui's exposure to JVs remains reasonable, the consolidated co-operation projects are of greater concern, given the possible debt-like arrangements.

  Jingrui's H1/21 results were in line with our expectations, despite the weak profitability and higher debt. The increases in contracted sales and revenue were promising. The credit profile remained weak, with slight improvements thanks to strong top-line growth.   Positively, liquidity is adequate. The company's maturity profile has been extended. Jingrui maintained decent access to capital, and slowed its pace of expansion in H1/21. However, the company is now in breach of two of the Three Red Lines thresholds, and will need to reduce debt in H2 to meet regulatory requirements.   Notably, Jingrui has increased its use of JVs, possibly to scale up. This is indicated by the company's decreasing consolidation ratio. While Jingrui's exposure to JVs remains reasonable, the consolidated co-operation projects are of greater concern, given the possible debt-like arrangements. 

Jingrui - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

China

Logan Property Holdings Company Limited is a real estate development company. The Company focuses on residential property projects.

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Logan Property Holdings (3380 HK)

Morning Views Asia: Powerlong Commercial Management Holdings

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: Central China Securities, CIFI Holdings, Guangzhou R&F Properties

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Asia HY Monthly - Chinese Variable Interest Entities - Lucror Analytics

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that...

Lucror Analytics

Logan Group - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Logan Group’s H1/21 results were in line with our expectations. The growth in contracted sales and revenue was robust, reflecting good sales...

Lucror Analytics

Jingrui - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Jingrui's H1/21 results were in line with our expectations, despite the weak profitability and higher debt. The increases in contracted sales and...

Lucror Analytics

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